My old man served on the board of the bank of Canada (Canadian version of the fed) and watched Gerald Bouey agonize over rate increases, when he had to jack them to 18% in the 1970's the Fed should be capable of understanding that if they do drop rates they willl be well on their way to this scenario. It ruined alot of people, imagine being put in the position where you got to choose that that is the best out. Cramer is pleading right now to drop the rates and claiming veterans of the market are on his side, when its at like 5.5% this is a total fucking joke, that is still lowrr than average and he is also implying that the people who lead the central banks have no sympathy, can you imagine the agony they went through in 1970 to hike interest rates like that?? The bottom line is bernanke should, (if he is intelligent)realize the amount of people who will lose their homes at 6.5% or whatever it is in the states right now, and should know if he was tko cut rates right now it will once again lead to an 18% interest rate, WHICH WILL SLAUGHTER THE MARKET, once in a while you have to bite the bulllet, no rate drop coming any time soon in my opinion. No chance of a rate cut, short the market into the next fed decision.
Only one person to blame but Greenspan he single-handedly f***ed the market by flooding the market with $$$$$$$$$$$$$$$$ Remember M3 reporting...once Greenspan requested printing presses to run 24x7 they decided better not report the increase in money supply (M3) Real inflation is running at double-digit levels, while reported inflation is <3% (providing you don't eat or use any energy). If fed cuts rates then just more fuel on the fire......unfortunately the economy has to rein in spending. US economy CAN NOT continue to run twin deficits in perpetuity.
the fed does not care about the dollar. paulson's friends at goldman are heavily short the dollar. the fed will cut rates and there will be a knee jerk reaction from the market forcing shorts to cover. congress and the states will come to rescue of subprime borrowers. the party will continue for awhile. inflation will take over. the printing presses will work overtime to pay off government obligations this is bush's legacy.
Bernanke is. Time to teach this pisher a lesson about real estate liquidation. Next up - smaller size loan commercial meltdown. Fine with those of us who take people's homes away - he called the play.